Fred Goodwin stripped of knighthood | Business | The Guardian Fred Goodwin Fred Goodwin stripped of knighthood Forfeiture committee advises Queen to strip former RBS chief executive of honour awarded by Labour government in 2004 Sir Fred Goodwin, the former chief executive of the Royal Bank of Scotland who has been stripped of his knighthood. Photograph: Murdo Macleod Tuesday 31 January 2012 13.12 EST First published on Tuesday 31 January 2012 13.12 EST Close This article is 4 years old Fred Goodwin, the former chief executive of the Royal Bank of Scotland , has been stripped of his knighthood by the Queen on the advice of the forfeiture committee. It was awarded by the previous Labour government in 2004 for services to banking . The London Gazette announced that he had brought the honours system into disrepute. Goodwin has no right of appeal, and in accordance with custom was given no right to make representations to the forfeiture committee, a group of four permanent secretaries. The authority to rescind an honour rests with the Queen alone.

David Cameron said: "I welcome the forfeiture committee's decision on Fred Goodwin's knighthood. The FSA [Financial Services Authority] report into what went wrong at RBS made clear where the failures lay and who was responsible. The proper process has been followed and I think we've ended up with the right decision." The chancellor, George Osborne, told Sky News: "I think we've got a special case here of the Royal Bank of Scotland symbolising everything that went wrong in the British economy over the last decade. "Fred Goodwin was in charge and I think it's appropriate that he loses his knighthood." Announcing the decision, the Cabinet Office said in a statement: "This decision not normally published in advance was taken on the advice of the forfeiture committee, which advised that Fred Goodwin had brought the honours system in to disrepute." The timing of the announcement was intriguing. It came the day after Cameron struggled to explain why he had not demanded that the current chief executive of RBS, Stephen Hester, refuse to take his full bonus. Both Cameron and Ed Miliband had called for Goodwin to lose his knighthood.

Thehe forfeiture committee said: "The scale and the severity of the impact of his actions as chief executive officer of RBS made this an exceptional case. "In 2008 the government had to provide £20bn of new equity to recapitalise RBS and ensure its survival and prevent the collapse of confidence in the British banking system. Subsequent increases in government capital have brought the total necessary injection of taxpayers' money in RBS to £45.5bn. "Both the Financial Services Authority and the Treasury select committee have investigated the reasons for this failure and its consequences. "They are clear that the failure of RBS played an important role in the financial crisis of 2008-09, which together with macroeconomic factors triggered the worst recession in the UK since the second world war and imposed significant direct costs on British taxpayers and businesses. Fred Goodwin was the dominant decision maker at RBS at the time.

"In reaching this decision it was recognised that widespread concerns about Fred Goodwin's decision meant that the retention of a knighthood for services to banking could not be sustained." The CBI said: "The business community will understand the Queen's decision to take away the knighthood awarded to Fred Goodwin for services to banking in 2004. Such an annulment is exceptional but unsurprising, given all of the circumstances." Normally an honour is withdrawn if someone is guilty of a criminal offence, and it will be asked whether other knighted bankers should also see their honours withdrawn. The forfeiture committee is chaired by Sir Bob Kerslake, the head of the civil service. The other members are Dame Helen Ghosh, the permanent secretary at the Home Office, Paul Jenkins, the Treasury solicitor, Sir Peter Housden, the permanent secretary of the Scottish government, and Sir Jeremy Heywood, the cabinet secretary. Ed Miliband told Sky News he welcomed the move. But he added: "I think it's only the start of the change we need in our boardrooms. We need to change the bonus culture and we need real responsibility right across the board.

I think that is what the public want, I think that is what government working with the private sector needs to deliver." David Fleming, Unite's national officer, said: "It is a token gesture to strip Fred Goodwin of his knighthood, but one which will be well received by the thousands of workers who lost their jobs during his rule. "Nonetheless this will do nothing to bring job security to the staff across the banking sector who continue to work under a culture of excess and greed at the top. Action from the government is needed in banking reform, not simply empty rhetoric on knighthoods or shareholder activism." The former director general of the CBI and one-time Labour trade minister Lord Digby Jones said: "I think there is the faint whiff of the lynch mob on the village green about this, but that isn't to say that the end result isn't what is right." The Conservative MP David Ruffley, a member of the Treasury select committee, told Sky News: "This was a reckless man. He was playing with other people's money … he wasn't very good at it. He proved a huge disservice to the banking industry and I think what people wanted to hear was that this man was held to account.

"Bizarrely there's been no criminal charges against the man, so he's not going to be in front of a jury and there was a sense that this guy had got away scot-free and the only thing left really to show the public opprobrium was for the knighthood to be stripped." Senior Tories say former Lloyds TSB chair Sir Victor Blank and ex-HBOS chief Sir James Crosby should also lose knighthoods Published: 1 Feb 2012 Former chancellor and leading figures from the business world say the political pressure to strip the former RBS boss of his knighthood was like a lynch mob Published: 1 Feb 2012 Ex-RBS chief executive pays price for role in the recession, leading to calls for others to be stripped of honours Published: 31 Jan 2012 Fred Goodwin is the 35th person to have forfeited an honour since 1995.

The following is an alphabetical list of the others Published: 31 Jan 2012 Former RBS boss Fred Goodwin stripped of knighthood - BBC News BBC News Former RBS boss Fred Goodwin stripped of knighthood 31 January 2012 From the section UK Politics comments Read more about sharing. Close share panel Image caption Mr Goodwin was in charge of RBS in the run-up to its near collapse in 2008 Former Royal Bank of Scotland boss Fred Goodwin has had his knighthood removed. Mr Goodwin, who was heavily criticised over his role in the bank's near-collapse in 2008, was given the honour by the Labour government in 2004. The Queen cancelled and annulled the title following Whitehall advice. Party leaders, led by Prime Minister David Cameron, welcomed the decision. In the past, only convicted criminals or people struck off professional bodies have had knighthoods taken away. Mr Goodwin oversaw the multi-billion-pound deal to buy Dutch rival ABN Amro at the height of the financial crisis in 2007, which led to RBS having to be bailed out to the tune of £45bn by taxpayers.

There had been a growing clamour for Mr Goodwin to be stripped of his honour following thousands of job losses at RBS and in the banking industry since then, and the impact on the wider economy. 'Exceptional case' Robert Peston: Knighthood shredded After the removal of the knighthood, a Cabinet Office spokesman said: "The scale and severity of the impact of his actions as CEO of RBS made this an exceptional case." He added: "Both the Financial Services Authority and the Treasury Select Committee have investigated the reasons for this failure and its consequences. "They are clear that the failure of RBS played an important role in the financial crisis of 2008/9 which, together with other macroeconomic factors, triggered the worst recession in the UK since the Second World War and imposed significant direct costs on British taxpayers and businesses. "Fred Goodwin was the dominant decision-maker at RBS at the time.

In reaching this decision, it was recognised that widespread concern about Fred Goodwin's decisions meant that the retention of a knighthood for 'services to banking' could not be sustained." 'Proper process' The BBC's business editor Robert Peston said Mr Goodwin was in a "class of his own" in terms of the risks that he took at RBS - reflected in the size of the bailout required to rescue the company. In 2009, Mr Goodwin, who received an annual pension of £650,000 - later reduced to £342,500 - after leaving the bank, told a committee of MPs he "could not be more sorry" for what had happened. Media captionGeorge Osborne, Ed Miliband and Alex Salmond react to Fred Goodwin losing his knighthood Both Mr Cameron and Labour leader Ed Miliband welcomed the decision. "The FSA report into what went wrong at RBS made clear where the failures lay and who was responsible," Mr Cameron said. "The proper process has been followed and I think we have ended up with the right decision." And Mr Miliband said the public wanted to see further sweeping changes to boardroom culture and remuneration.

"It is right that Fred Goodwin lost his knighthood but I think it is only the start of the change we need in our boardrooms. "We need to change the bonus culture and we need real responsibility right across the board." 'Public opprobrium' Deputy Prime Minister and Lib Dem leader Nick Clegg said Tuesday's announcement was the "right decision" while Chancellor George Osborne described the decision as "appropriate". RBS came to symbolise everything that went wrong in the British economy in the last decade George Osborne, Chancellor "RBS came to symbolise everything that went wrong in the British economy in the last decade," he said. Scottish First Minister Alex Salmond said it was the "correct decision", since the knighthood "was for services to banking which could not therefore be sustained". The Unite union also welcomed the move, with senior official David Fleming saying it was "a token gesture... but one which will be well received by the thousands of workers who lost their jobs during his rule". Conservative MP David Ruffley, a member of the House of Commons Treasury Select Committee, said Mr Goodwin had acted "recklessly" and the public wanted him to be "held to account".

He told Sky News "there was a sense that this guy had got away scot-free and the only thing left really to show the public opprobrium was for the knighthood to be stripped". 'Politicising honours' Media captionSir Jackie Stewart: "Fred Goodwin hasn't committed a crime of any kind" However, the move was not welcomed by all. Simon Walker, director general of the Institute of Directors, did not approve of the honour withdrawal, saying he was concerned there was "a hysteria about the whole situation". While he said that the system of stripping an honour for criminal offences was "appropriate", he added: "To do it because you don't like someone, you don't approve of someone, you think they have done things that are wrong but actually there is no criminality alleged or charged, I think is inappropriate and politicises the whole honours system." The forfeiture committee - whose members include the cabinet secretary, the top civil servant at the Home Office, the top lawyer at the Treasury and the top official in the Scottish government - made the decision to recommend he lose the honour. The Queen has the sole authority to rescind a knighthood, after taking advice from the government.

Sir Fred Goodwin injunction: RBS chief's sexual relationship on eve of £45bn collapse | Daily Mail Online Former mistress is senior executive at troubled bank Appears to have broken his own bank's code of conduct with relationship 'This is about the right to know about wrongdoing in public life' Unlike her husband's mistress, Lady Goodwin had no anonymity to hide behind. Looking weary and sombre, Lady Joyce Goodwin cut a lonely figure as she was pictured leaving the £3.5 million family home in Edinburgh where she is being comforted by a close relative thought to be her mother. It is thought to be the first time she, the mother of Sir Fred's two children, has been seen publicly since the allegations surfaced about her husband's infidelity. 'Fred does live here but you won't find him because he's never in,' said a gardener. 'Joyce is always here but usually alone.' Sir Fred Goodwin is facing claims from MPs that his alleged affair with a senior colleague could have affected his judgment as the Royal Bank of Scotland collapsed.

Stony-faced: Sir Fred Goodwin's wife leaves the family home in Edinburgh after allegations about her husband surfaced The mansion in 2.3 acres was built for footballer Graeme Souness and bought by the Goodwins in June. It has a floodlit tennis court, Japanese garden and a circular fountain in the driveway. The couple met when Sir Fred, 52, was working for the Touche Ross accountancy group in the 1980s. RELATED ARTICLES Share this article Share Joyce was with a rival institution and was pitching for the same client as her future husband. In one of his few interviews, Sir Fred said their romance grew after he experienced ‘the rough edge of her tongue’ during this encounter. They married in Glasgow in 1990 as Sir Fred began climbing the corporate ladder. Whilst the Paisley-born banker began mixing with his sporting heroes Jackie Stewart and Jack Nicklaus, his wife also enjoyed the trappings of wealth.

Affair: An injunction hiding Sir Fred Goodwin's illicit relationship with a female colleague during the time of the RBS collapse has been revealed after it was lifted following comments in the House of Lords There were lavish dinners in Britain with royalty and the great and good, and even a banquet at the White House. For the first time, the public learned that Sir Fred took out a privacy injunction to cover up an affair he was having with a senior woman executive as he led the bank to a disaster that ultimately cost the taxpayer £45billion. MPs and peers called for the whole truth and questioned whether Sir Fred’s decision-making was impaired. There were also demands for him to be re-interviewed by the Financial Services Authority which is compiling a long-awaited report into the 2008 collapse of RBS. After weeks of speculation over why the disgraced banker had taken out a gagging order, the reason was dramatically revealed in Parliament. Lord Stoneham of Droxford used Parliamentary privilege to pull down Sir Fred’s wall of secrecy. Love cheat: Sir Fred and Lady Joyce (pictured) have been married for more than 20 years.

He apparently broke his own bank's code of conduct when he began a sexual relationship with a colleague Asking a question on behalf of his colleague Lord Oakeshott, a critic of Sir Fred, he said: ‘Every taxpayer has a direct public interest in the events leading up to the collapse of the Royal Bank of Scotland, so how can it be right for a super-injunction to hide the alleged relationship between Sir Fred Goodwin and a senior colleague? If true, it would be a serious breach of corporate governance and not even the Financial Services Authority would be allowed to know about it.’ Hours later, the Daily Mail applied for the existing injunction covering Sir Fred to be lifted. Lawyers for Sir Fred told Mr Justice Tugendhat in the High Court that since the affair was now in the public domain they would not try to maintain his protection. The judge partially lifted the injunction but said terms preventing publication of the name of the woman or details of their ‘sexual relationship’ should remain in force.

Lord Stoneham, pictured yesterday, revealed details of the former chief executive of Royal Bank of Scotland's court order in the House of Lords Lord Oakeshott, who began asking Parliamentary questions about Sir Fred last month, said the FSA must redouble its efforts to find out the truth behind the bank’s collapse. ‘We must get to the bottom of what went wrong when the Royal Bank of Scotland went bust,’ he said. ‘We must learn the lessons through a full report from the Financial Services Authority so the banks can never bring Britain to its knees again. If that is not in the public interest I don’t know what is.’ Lord Oakeshott today told BBC Radio 4's Today programme: 'I'm very concerned the whole story should be out there, should be properly investigated and we should all learn the lessons of the collapse. 'This was the biggest corporate crash in British history.' He said he would not consider revealing details of other superinjunctions, such as those banning reports of footballers' and actors' alleged affairs. He added: 'I couldn't care less if footballers are playing away. This is quite different, this is not the question of footballers' sex lives - I'm not interested in that.

This is a major, overwhelming public interest.' He branded secrecy around the former RBS chief executive 'stupid', saying the alleged affair may be crucial to a Financial Services Authority probe into RBS' collapse. Lord Oakeshott added: 'I wanted to make sure the regulator could look at this. 'If this is not overwhelming public interest to get to the bottom of what happened when the Royal Bank of Scotland collapsed causing billions (of pounds) of cost to taxpayer and many thousands of families lost their jobs - I can't conceive of a more overwhelming public interest.' One key question is whether Sir Fred broke the RBS code of conduct, which says employees who have affairs with colleagues should tell their managers if there is any possibility that their judgment might be affected. The bank, which had grown to become one of the biggest financial organisations in the world under Sir Fred’s aggressive leadership, bought a Dutch rival, ABN AMRO, in a £55billion takeover October 2007. It subsequently collapsed under the weight of bad loans and its own lack of cash. Sir Fred, 52, quit after negotiating the effective nationalisation of the bank at vast cost to taxpayers.

An investigation into the collapse by the FSA, the City regulator, has been long delayed and is eagerly awaited. However, the privacy injunction has meant the FSA has been unable to inquire into whether Sir Fred’s relationship with a colleague had any impact on the fate of the bank. In the High Court yesterday, Hugh Tomlinson, QC, representing Sir Fred, described the background to the injunction as a ‘piece of tittle tattle’ and added that there was no true ‘public interest’ in the details being made public. But he continued: ‘Because matters have come out into the public domain in this case it is sensible to vary the order of the court and what has been put into the public domain through Lord Stoneham’s announcement or question in Parliament.’ Mr Justice Tugendhat said: ‘The main point is that this is an injunction relating to a sexual relationship. The existing order prohibits the naming of the other person to the relationship and prohibits the publication of any details.

That remains in force.’ He also said: ‘I should add that the original injunction had no effect on the FSA or any other regulatory body.’ The political spotlight turned on to Sir Fred – who was first named in connection with a privacy injunction in the Commons in March by LibDem MP John Hemming – last month. Peers began asking questions about him after BBC TV personality Andrew Marr admitted to the Mail that he had taken out a privacy injunction to hide an affair with a journalist. The woman had a child who at one stage Mr Marr thought was his own. PARLIAMENTARY PRIVILEGE 1. What is it? It is the privilege which stops MPs and peers from being sued for defamation for any statement they make in Parliament. 2. What are its origins? The origins date back to the English Civil War when Parliament was fighting for the right to independence from the monarchy. Back then the law was the will of the King. But it was the 1689 the Bill of Rights which established parliament's rights following the Glorious Revolution and officially enshrined parliamentary privilege in English law.

Article 9 guarantees freedom of speech stating "the freedom of speech and debates or proceedings in parliament ought not to be impeached or questioned in any court or place out of Parliament". 3. Why is it an issue now? It is controversial now as the Lord Chief Justice said today newspapers could be found in contempt of court for merely reporting what is said in Parliament. His comments are seen by critics as an attempt by the courts to censor parliamentary proceedings - when it is a constitutional right enshrined in English law - and they say the law belongs to everyone - not just judges and the courts. Campaigning politicians welcomed the outing of Sir Fred but said taxpayers still need to know the truth about the collapse of RBS. Mr Hemming, MP for Birmingham Yardley, said: ‘The decision to lift the anonymity of Fred Goodwin today is a small victory for free speech. It is, however, a victory. ‘I think the judiciary recognise which way the wind is blowing. However, what they really need to do is to change tack.’ Lord Stoneham told Channel 4 News: ‘An issue like this, where RBS was bailed out by the taxpayer, this is the chief executive of that bank.

There are issues of corporate governance, and they should be out in the open. ‘I’m all for the families being protected but I think the individual, the chief executive, has to be held accountable.’ Did Sir Fred's affair with senior colleague affect his judgment before RBS collapse? Big shot: Sir Fred on a clay pigeon shoot. The nature of the injunction he had meant that his former employers had no idea what he got up to during his time as chief executive Sir Fred Goodwin apparently broke his own bank’s code of conduct when he began a sexual relationship with a colleague before the credit crunch. Royal Bank of Scotland rules say close personal relationships with colleagues can create conflicts of interest and employers should report them to their managers. The code’s opening paragraph states: ‘While the Group entirely respects the right of every one of us to form friendships and personal relationships at work, there will be occasions when it will be appropriate to tell your manager about a relationship that may impact on your work by creating a conflict of interest.’ But the real question facing both RBS and its disgraced former boss last night was whether his affair badly affected his judgment at such a fraught time, just before the credit crunch. It is clear he did not disclose his relationship with a colleague to the board.

Sir Fred left the bank in October 2008. But rumours of his affair did not begin to circulate until earlier this year. The injunction obtained by Sir Fred on March 2 this year prevented the public from being told about his affair. Indeed, it initially barred the media from even reporting that it concerned a banker or naming Sir Fred. In a further twist, the Financial Services Authority – the regulator currently charged with investigating the collapse of the bank – could not consider whether it had any relevance. Its report has still to be published. And the court order meant the board of RBS, Sir Fred’s former employers, were not allowed to be informed about what really happened during his time as chief executive. Had he followed his firm’s own code of behaviour, he would have been duty bound to inform the bank’s chairman, Sir Tom McKillop, about his affair. It was only when LibDem MP John Hemming used Parliamentary privilege to name Sir Fred in the Commons on March 10 that the public – and the RBS board – realised the disgraced ex-chief executive had something to hide.

Breaking the rules: Sir Fred Goodwin broke RBS's own code of conduct regarding personal relationships by conducting the affair with the woman It was during the tumultuous months of 2007 that Sir Fred engineered the £55billion takeover by RBS of Dutch bank ABN AMRO. The disastrous move was made in the spring of that year. But soon after RBS won the auction for ABN the credit crunch struck, wholesale money markets froze over and Northern Rock became the first British bank to suffer a run on its deposits since the 19th century. At this point RBS, had yet to take possession of the Dutch bank and could have pulled out of the deal. Instead, Sir Fred pressed ahead. The acquisition left RBS saddled with mountains of toxic debt linked to U.S. sub-prime mortgages, whose value plunged as U.S. house prices crashed. A desperate Sir Fred raised £12billion from shareholders in June 2008, as he tried and failed to sell off insurance subsidiaries Churchill and Direct Line for £7billion; as he tried to bluff his way through the summer pretending his bank was doing fine; and as, in his final act, he negotiated its state bail-out.

According to latest estimates, that bail-out has cost taxpayers £45billion, enough to cover Britain’s annual defence budget. Did the fact that Sir Fred was involved in an alleged affair with a colleague – who, like him, was married with children – over this period affect his judgment at any point? The bank’s code of conduct is clear that Sir Fred should have informed a superior of what was going on. It says: ‘You may not be able to see that your judgment has been compromised. Asking your manager to help you make a judgment will assist in ensuring that your position is viewed objectively.’ And it adds: ‘If, in the context of performing your duties, it could be suggested that you are acting in your own interests or those of another person with whom you have a relationship, rather than in the interests of the Group, you may have a conflict of interest.’ Yesterday RBS declined to say whether Sir Fred had told the board about his relationship. The deliberations of Mr Justice Henriques, the judge who originally decided to grant the injunction to Sir Fred, are unknown.

However if he followed the procedures commonly used by judges in privacy claims, he will have considered whether there was any public interest in the publication of news about Sir Fred’s affair, and decided there was none. LibDem MP Mr Hemming said yesterday: ‘I have some difficulty understanding the logic of the judiciary. In one recent privacy case a judge has said there has been blackmail, without any apparent evidence of that. ‘Now we have a judge who sees no public interest in the behaviour of the chief executive who was in charge of the biggest loss in banking history which appears to have run against his own organisation’s code of conduct.’ Mr Hemming added: ‘In the new circumstances, you would expect the RBS to say whether Sir Fred complied with the code of conduct or not. Silence speaks volumes.’ This isn't tittle tattle - it matters to us all By JOHN HEMMING (LIB DEM MP) Passionate: John Hemming said that he revealed Sir Fred Goodwin's injunction because he believes the courts are on a very worrying path Ask the average man or woman on the street if they think they have a right to know about another individual’s sex life and they will most likely answer ‘no’.

But ask that same person if they think they have a right to know about another person’s sex life if it may have affected their ability to do their job – a job which saw them looking after millions of pounds of taxpayers’ money – and the answer would probably be an emphatic ‘yes’. So when it was revealed yesterday that former RBS chief executive Fred Goodwin had sought to legally suppress information about his alleged relationship with a senior colleague, the debate about super-injunctions was thrown into sharp focus. There is absolutely no doubt that this is a matter of great public interest – the man who presided over the biggest banking loss ever incurred in this country stands accused of a serious breach of corporate governance. No chief executive should ever be excused from answering such charges because of trumped-up concerns over privacy. And far from protecting individual privacy – which is the argument given by those taking out these costly measures – what the draconian injunctions actually do is to go against the rule of law, by preventing the authorities from investigating matters they have every right to look into.

When the Government commissioned reports into the collapse of MG Rover in 2005, it rightly focused on the personal relationships of directors and found that one had paid more that £1.6million to a consultant with whom he was having an affair, just as the company was collapsing. Scrutiny has been much harder as judges have begun interpreting legislation on privacy from the European Court of Human Rights differently, without consulting Parliament. When I revealed in Parliament earlier this year that Sir Fred had taken out an order preventing him from even being referred to as a banker, I did so because I have come to believe passionately that our courts are on a very worrying path. The danger of creeping court secrecy is that it allows bad behaviour to go unchecked. And while it is true that not everything should be reported in the Press – for example, some sensible limits are needed on the reporting of disputes between parents and children – these limits should not prevent people from complaining when things go wrong. Do not be fooled into thinking this is merely a debate about the private lives of a few celebrities. This is about something far more fundamental, and relevant to us all – the right to know about wrongdoing in public life. The job of the Press is to make sure people know what is going on.

If they are able to do so, those in the public eye are more likely to behave properly as a result. The recent MPs’ expenses scandal is a pertinent example of how badly people can behave when their behaviour is not being scrutinised. Only when the debacle came to light were changes made to the system and individuals made to explain themselves. Recently, we found that a judge has banned the reporting of the fact that toxic substances are likely to have been in drinking water tanks on some passenger ships. Surely this should not be withheld from the public simply because a company is wealthy enough to take out a gagging injunction? In another instance, details about a relationship between two actors which resulted in one being sacked – a clear example of discrimination – has become the subject of a super-injunction and cannot be reported. And even more worryingly, I personally know of two instances where an injunction taken out by a local authority has prevented constituents of mine complaining to me about perceived injustices. So do not be fooled into thinking this is merely a debate about the private lives of a few celebrities – they just happen to have taken advantage of the current direction of the courts. This is about something far more fundamental, and relevant to us all – the right to know about wrongdoing in public life.

After all, with even the limited amount of information that has seeped out about Sir Fred, do you not believe we have a right to know exactly what was going on as he presided over a banking disaster which affected us all? Former RBS boss Fred Goodwin stripped of knighthood - BBC News BBC News Former RBS boss Fred Goodwin stripped of knighthood 31 January 2012 From the section UK Politics comments Read more about sharing. Close share panel Image caption Mr Goodwin was in charge of RBS in the run-up to its near collapse in 2008 Former Royal Bank of Scotland boss Fred Goodwin has had his knighthood removed. Mr Goodwin, who was heavily criticised over his role in the bank's near-collapse in 2008, was given the honour by the Labour government in 2004. The Queen cancelled and annulled the title following Whitehall advice. Party leaders, led by Prime Minister David Cameron, welcomed the decision. In the past, only convicted criminals or people struck off professional bodies have had knighthoods taken away.

Mr Goodwin oversaw the multi-billion-pound deal to buy Dutch rival ABN Amro at the height of the financial crisis in 2007, which led to RBS having to be bailed out to the tune of £45bn by taxpayers. There had been a growing clamour for Mr Goodwin to be stripped of his honour following thousands of job losses at RBS and in the banking industry since then, and the impact on the wider economy. 'Exceptional case' Robert Peston: Knighthood shredded After the removal of the knighthood, a Cabinet Office spokesman said: "The scale and severity of the impact of his actions as CEO of RBS made this an exceptional case." He added: "Both the Financial Services Authority and the Treasury Select Committee have investigated the reasons for this failure and its consequences. "They are clear that the failure of RBS played an important role in the financial crisis of 2008/9 which, together with other macroeconomic factors, triggered the worst recession in the UK since the Second World War and imposed significant direct costs on British taxpayers and businesses. "Fred Goodwin was the dominant decision-maker at RBS at the time.

In reaching this decision, it was recognised that widespread concern about Fred Goodwin's decisions meant that the retention of a knighthood for 'services to banking' could not be sustained." 'Proper process' The BBC's business editor Robert Peston said Mr Goodwin was in a "class of his own" in terms of the risks that he took at RBS - reflected in the size of the bailout required to rescue the company. In 2009, Mr Goodwin, who received an annual pension of £650,000 - later reduced to £342,500 - after leaving the bank, told a committee of MPs he "could not be more sorry" for what had happened. Media captionGeorge Osborne, Ed Miliband and Alex Salmond react to Fred Goodwin losing his knighthood Both Mr Cameron and Labour leader Ed Miliband welcomed the decision. "The FSA report into what went wrong at RBS made clear where the failures lay and who was responsible," Mr Cameron said. "The proper process has been followed and I think we have ended up with the right decision." And Mr Miliband said the public wanted to see further sweeping changes to boardroom culture and remuneration.

"It is right that Fred Goodwin lost his knighthood but I think it is only the start of the change we need in our boardrooms. "We need to change the bonus culture and we need real responsibility right across the board." 'Public opprobrium' Deputy Prime Minister and Lib Dem leader Nick Clegg said Tuesday's announcement was the "right decision" while Chancellor George Osborne described the decision as "appropriate". RBS came to symbolise everything that went wrong in the British economy in the last decade George Osborne, Chancellor "RBS came to symbolise everything that went wrong in the British economy in the last decade," he said. Scottish First Minister Alex Salmond said it was the "correct decision", since the knighthood "was for services to banking which could not therefore be sustained". The Unite union also welcomed the move, with senior official David Fleming saying it was "a token gesture... but one which will be well received by the thousands of workers who lost their jobs during his rule". Conservative MP David Ruffley, a member of the House of Commons Treasury Select Committee, said Mr Goodwin had acted "recklessly" and the public wanted him to be "held to account".

He told Sky News "there was a sense that this guy had got away scot-free and the only thing left really to show the public opprobrium was for the knighthood to be stripped". 'Politicising honours' Media captionSir Jackie Stewart: "Fred Goodwin hasn't committed a crime of any kind" However, the move was not welcomed by all. Simon Walker, director general of the Institute of Directors, did not approve of the honour withdrawal, saying he was concerned there was "a hysteria about the whole situation". While he said that the system of stripping an honour for criminal offences was "appropriate", he added: "To do it because you don't like someone, you don't approve of someone, you think they have done things that are wrong but actually there is no criminality alleged or charged, I think is inappropriate and politicises the whole honours system." The forfeiture committee - whose members include the cabinet secretary, the top civil servant at the Home Office, the top lawyer at the Treasury and the top official in the Scottish government - made the decision to recommend he lose the honour. The Queen has the sole authority to rescind a knighthood, after taking advice from the government.

Fred Goodwin | The Royal Bank of Scotland plc | ZoomInfo.com The Royal Bank of Scotland plc HQ Phone: +44 131 626 0000 Get ZoomInfo Grow + Get 10 Free Contacts a Month Please agree to the terms and conditions I agree to the Terms of Service and Privacy Policy . I understand that I will receive a subscription to ZoomInfo Grow at no charge in exchange for downloading and installing the ZoomInfo Contact Contributor utility which, among other features, involves sharing my business contacts as well as headers and signature blocks from emails that I receive. United Kingdom Company Description At RBS, we make it our business to understand your business. That's why our Relationship Managers are accredited by the Chartered Banker Institute. With teams of experts in various sectors across the UK, you can talk to us about products and planning for ...

more Find other employees at this company (44,220) Background Information RBS Citizens Financial Group Inc Board Member Head of RBS Bank, A Liberal Member Parliament Web References (200 Total References) Fred Goodwin Fred Goodwin, the former chief executive of Royal Bank of Scotland, has had his knighthood removed after heavy criticism for his role in the bank's near-collapse... LONDON - England - Former [cached] LONDON - England - Former Royal Bank of Scotland CEO, Fred Goodwin, was invited to Buckingham palace today for a game of chess he will never forget. ... Full story Banking News and UK Comment 2012.htm [cached] Thousands launch £3 billion legal action against Fred Goodwin - Former Royal Bank of Scotland chief executive Fred Goodwin and his ex-boardroom colleagues now face allegations that they misled shareholders into investing £12 billion in the bank shortly before its near-collapse. RBOS Shareholders Action Group will deliver 'letters of claim' to Edinburgh-based Goodwin, who was stripped of his knighthood in January, as well as the bank's former chairman Sir Tom McKillop, its former head of investment banking Johnny Cameron and Guy Whittaker, its former finance director. ...

It wasn't Fred Goodwin on his own who caused the problems. He was part of a team of people." Eddy Weatherill, chairman of the Independent Banking Advisory Group, added: "These people were sleeping while Fred drove the car over the cliff. ... Mr Weatherill is concerned the decision to strip Mr Goodwin of his title would act as a smokescreen. ... The Financial Services Authority report on the collapse of RBS, published in December, was highly critical of Mr Goodwin's management style. ... Should Fred Goodwin be stripped of his knighthood? - link to Question time answers to that question -IBAS Comment: Our answer is that of course Fred Goodwin should be stripped of his knighthood - and also without any further time loss (after 4 years already debating it). It's a complete nonsense that he was given the knighthood for services to banking - equally his conduct in leading a major bank onto the rocks evidences not only his but also his complete team's disservice to banking and the whole UK population. Common sense and forward thinking should mean that Government will make an example of Fred Goodwin and remove his knighthood in return for the conduct which has tipped the whole UK financial services into chaos.

We doubt there is any UK business now forced to struggle in order to just maintain it's solvency - which would not support a Government motion that Fred Goodwin should now be stripped of his Former RBS chief executive Fred Goodwin stripped of his knighthood - Telegraph Former RBS chief executive Fred Goodwin stripped of his knighthood Fred Goodwin, the disgraced former Royal Bank of Scotland chief executive, has been stripped of his knighthood. 5:43PM GMT 31 Jan 2012 Government officials confirmed the award has been "cancelled and annulled" because the bank's former chief executive had "brought the honours system into disrepute". The Forfeiture Committee met last week to consider the issue. Its recommendation to strip Mr Goodwin of the honour was conferred to the Queen by Prime Minister David Cameron, the Cabinet Office said. Mr Cameron said it was "the right decision" to strip Fred Goodwin of his knighthood. The announcement that Mr Goodwin has been stripped of the honour for "services to banking" will shortly be announced in the London Gazette.

"The scale and severity of the impact of his actions as chief executive of Royal Bank of Scotland made this an exceptional case," a spokesman for the Cabinet Office said. Related Articles Profile: Fred Goodwin 31 Jan 2012 The Government had to use £45 billion of taxpayer money to bail out the bank, after it ran into difficulties in 2008. The Cabinet Office said: "Both the Financial Services Authority and the Treasury Select Committee have investigated the reasons for this failure and its consequences. "They are clear that the failure of RBS played an important role in the financial crisis of 2008-9 which, together with other macroeconomic factors, triggered the worst recession in the UK since the Second World War and imposed significant direct costs on British taxpayers and businesses. "Fred Goodwin was the dominant decision maker at RBS at the time." The Forfeiture Committee, which made the decision, is chaired by Sir Bob Kerslake, head of the civil service. "The scale and severity of the impact of his actions as CEO of RBS made this an exceptional case," it said.

The Honours Forfeiture Committee has stripped Fred Goodwin of his knighthood [Photo: PA] Political pressure has been mounting for the title awarded by Labour to Sir Fred in 2004 for "services to banking" to be withdrawn over his role in the subsequent collapse of RBS. A spokesman for business lobbying group the CBI said: "The business community will understand the Queen's decision to take away the knighthood awarded to Fred Goodwin for services to banking in 2004. Such an annulment is exceptional but unsurprising, given all of the circumstances." The campaign to strip him of his knighthood gained fresh momentum earlier this week after a member of the independent panel overseeing last year's inquiry in the collapse of Royal Bank of Scotland judged that the report amounted to a regulatory "censure" of the former RBS chief executive. Under the honours system, recipients can be made to hand back an award if they are "censured by the relevant regulatory authority for actions which are directly relevant to the granting of an honour", the Honours Forfeiture Committee rules state.

Sir Fred became the symbol of the banking sector's ills after leading RBS to a near-collapse that required a £45bn taxpayer bail-out, and then demanding his contractual entitlement to an £8m pension top-up. Facing furious public criticism, he later gave back a portion of his entitlement. A number of cross-party MPs had called for Sir Fred's knighthood to be removed, including Labour leader Ed Miliband. David Fleming, Unite national officer said: "It is a token gesture to strip Fred Goodwin of his knighthood, but one which will be well received by the thousands of workers who lost their jobs during his rule. "Nonetheless this will do nothing to bring job security to the staff across the banking sector who continue to work under a culture of excess and greed at the top. Action from the Government is needed in banking reform, not simply empty rhetoric on knighthoods or shareholder activism." The Queen has the sole authority to rescind a knighthood, after taking advice. RBS declined to comment on the decision to annul Mr Goodwin's knighthood.

Sir Fred Goodwin's millions - The Scotsman Sir Fred Goodwin's millions 13:21 13:36 Saturday 28 February 2009 SIR Philip Hampton leaned forward into the microphone and interrupted the flow of questions from the floor to admit that there had been an error in the reporting of former Royal Bank of Scotland chief executive Sir Fred Goodwin's pension. "Sorry, but the payment is actually £693,000," the chairman said. An audible gasp of exasperation swept through the room full of press and television journalists attending the bank's results presentation. They were already demanding answers as to how Goodwin could justify that morning's headline figure of 650,000. Now it turned out to be even higher. With the whole nation in a state of furious indignation, Hampton had already admitted to a huddle of journalists before the presentation began that he had called Goodwin "about three weeks ago" to ask him to forfeit some of his pension. In his opening remarks to the press conference he went further: "I told Fred there could be reputational damage. He said he was thinking about it.

He is still thinking about it." But Hampton's appeal went unheeded. Within 24 hours senior politicians and commentators across the political and financial spectrum were in full cry, demanding Goodwin hand back the money or else be stripped of the payments and forced to sue the Government in the courts. Despite the weight of criticism, Goodwin stood firm, writing to Lord Myners, the Treasury minister with whom he agreed his final departure from the bank, saying that he had no intention of relinquishing a penny of his entitlement. Myners was immediately cast as the villain of the piece, accused of badly handling Goodwin's final severance package. Myners was party to the talks on Goodwin's departure over the weekend of October 10 to 12 when the Government was deep in negotiations over the 20bn bail-out of the bank. Myners was keen to avoid any "reward for failure" and he discussed the terms of Goodwin's severance with RBS chairman Sir Tom McKillop. It is not clear at what point Bob Scott, the chairman of the remuneration committee, got involved, but attention seemed to focus on Goodwin's pay-off rather than his pension.

Scott duly informed the board that Goodwin's pension pot would significantly increase, but Myners has been in denial about the discretionary element and the chancellor, Alistair Darling, claimed he knew only about it in recent weeks. Critics say Treasury ministers and their officials were guilty of bungling the talks. Sources now say that a simpler route would have been for the RBS board to sack Goodwin, in which case his claim would have diminished significantly. But one source close to the bank said: "They didn't want to sack him. They actually thought he was a good CEO." With Goodwin putting two fingers up to the Government and the public, it was left to ministers and opposition MPs to argue over who was to blame and whether there was any realistic chance of forcing his hand. Gordon Brown, the Prime Minister, began moves to claw back half of Goodwin's 16m pension pot amid a wider review of the rewards paid to departing senior executives. Lawyers, however, claimed Brown's chances of success were slim. Andrew Simmonds QC, a pensions lawyer, said it would be extremely difficult for the Government to win a case against the former banker. Others agreed.

Whether politicians like it or not, most experts say that Sir Fred Goodwin is entitled to his 693,000 pension under the rules of the Royal Bank of Scotland pension fund, in the same way any other employee in his position would be, as long as the bank remains solvent. The report and accounts clearly spell out that all UK directors with one exception are members of the Royal Bank of Scotland Group Pension Fund, and that the rules of the scheme "allow all members who retire early at the request of the employer to receive a pension based on accrued service with no discount for early retirement". This then would have been a condition of his employment from the day he joined the company in 1998. Every member of staff accrued a pension equivalent to a 60th of their final salary for each year of work. Goodwin brought service with him from previous banks which meant his 30-year working life allowed him to qualify for a pension based on half his final salary of 1.49m. There were some non-pensionable deductions, so his pension was calculated using a figure of 1.38m, giving 693,000.

There is no denying the RBS scheme is unusually generous, as most firms deduct 5% each year from what they are prepared to pay someone retiring early. Given Sir Fred retired a decade early, this would have slashed his pension to nearer 350,000. And it is not clear to what extent the 18bn fund, said to be in surplus at the last valuation, allowed for the fact that potentially large numbers might retire early on generous terms. For example, in the last report and accounts, Sir Fred's pension was valued at 8m. But this figure made no allowance for the possibility he might leave in a hurry. The next valuation of his pension due in the pending accounts is expected to be between 15m and 20m. Similarly, though the fund had a surplus 476m when it was last valued, the expectation is it will now have sunk into the red at the next valuation. Furthermore, this row may force the trustees to examine whether the fund is being prudently valued in any case. It might have been different if the bank had collapsed, with the fund in shortfall, like Lehman Brothers or Woolworths.

Sir Fred's pension would indeed have been shredded to 21,000, the most that can be paid out at 50 by the Pension Protection Fund. And he wouldn't receive it until he was 60. Given the bank was bust had it not been for taxpayer support, it is understandable that the public and politicians are outraged at this reward for failure, when thousands are losing their pension because their employers were allowed to fail and not bailed out. But it is not clear what can be done about it. In theory every pension is paid at the discretion of the pension fund trustees. But the law has been tightened up over the years, and where an employee is made a promise about the kind of pension he can expect to receive, such pledges are legally binding. The only get-out would be if any evidence emerged of professional negligence or misconduct that could be pursued through the courts. But such cases are notoriously lengthy and prone to fail, and in this case there is no evidence of such failings. Alternatively the Government could legislate to over-ride pensions agreements for firms bailed out by taxpayers. Meanwhile, Philip Hampton has pledged that RBS will re-write its pension rules for future appointments to the board.

None of this, however, will relieve Sir Fred of his pay-out. Fred Goodwin | Business | The Guardian Fred Goodwin Bank reaches settlement with three of five shareholder groups who claim they were misled over the £12bn rights issue in 2008 Published: 5 Dec 2016 Decision rests with panel whose remit for action is seen as both narrow and vague, claim experts on honours system Published: 21 Oct 2016 As the Cabinet Office reviews Philip Green’s knighthood, we look at former honourables who have had titles revoked Published: 25 Jul 2016 The biggest bank bailout in history led to a massive restructuring that, even seven years on, is far from complete Published: 12:33 PM The government’s stake in RBS is to be sold off, nearly seven years after the bank was bailed out during the financial crisis Published: 12:04 PM The ex-RBS chief's house, as well as those of his direct neighbours, are no longer directly visible on the mapping service.

By Alex Hern Published: 20 Jun 2014 RBS announces intention to sell 423m shares in UK's biggest car insurer as it prepares to unveil £8bn loss Published: 26 Feb 2014 Michael White's sketch: prime minister coasts through subdued PMQs without having to defend New Year honour given to supervisor of his side parting Published: 8 Jan 2014 The real cultists are not Maoists, they're CEOs Nick Cohen Nick Cohen: It is not only in religious or political circumstances where people are made to follow a leader unthinkingly Published: 30 Nov 2013 Bernie Ecclestone, the Formula One supremo, asked Fred Goodwin for help in financing a takeover bid by the venture capitalists CVC Partners in 2005 Published: 8 Nov 2013 Formula One's Bernie Ecclestone asked ex-RBS chief for takeover help September 2013 The truth about the collapse of RBS makes shocking reading, writes John Kampfner Published: 16 Sep 2013 From the BBC to RBS, we have to find a way to stop this injustice John Kampfner John Kamp

fner: Those guilty of malpractice or wasting public money must not escape punishment, even if criminality can't be proved Published: 5 Sep 2013 BBC NEWS | Business | Profile: Sir Fred Goodwin Profile: Sir Fred Goodwin Sir Fred was known in the City as a ruthless cost cutter Four months after leaving Royal Bank of Scotland, former chief executive Sir Fred Goodwin is under fire for the generosity of his £650,000-a-year pension.

Sir Fred, who stepped down after RBS had to be bailed out by the government, revelled in his nickname of Fred the Shred for cutting costs and jobs. Commonly described as the most charismatic and also most abrasive of the banking bosses, Sir Fred's position became untenable as the bank was propped up with £20bn of public money - now bolstered by another £13bn cash injection. Sir Fred was in charge at RBS for nine years and steered it from being a bit-part player to global icon as one of the world's top five banks. He built up the bank with acquisition after acquisition - NatWest, Coutts, Adam & Co, Direct Line, Ulster Bank, Churchill and Citizens Bank in the US - and then ruthlessly cut costs through staff reductions to generate bigger profits. But the wheels started to come off with the acquisition of ABN Amro as part of a consortium at the height of the boom in 2007. Even before his departure, Sir Fred was under fire because of heavy losses and a £12bn rights issue to raise more money for RBS.

Vintage cars Before leaving RBS, Sir Fred split his time between the City of London and the bank's new headquarters on the edge of Edinburgh. He is married to Joyce and has two children, but he has worked hard to protect his family's privacy. Sir Fred likes to restore vintage cars and the Royal Bank of Scotland's long association with Formula One may be in part due to his passion for cars. It certainly did not last long after his departure, as it has now emerged that RBS will end its sponsorship of the Williams Formula One team at the end of 2010. He plays golf, and is a fan of rugby. The bank is heavily involved as a sponsor of the Six Nations rugby union championship and it recently extended its sponsorship for a further four years in a deal worth £20m. The RBS became one of the world's top five banks Sir Fred was a regular visitor to No 11 Downing Street when Gordon Brown was chancellor. Sir Fred attended grammar school in Paisley and then went on to Glasgow University. He studied law and later became a chartered accountant in 1983 rising to partner at Touche Ross five years later.

Sir Fred led the team handling the liquidation of the Bank of Credit and Commerce International and his subsequent banking career took him to top positions at the Clydesdale Bank and Yorkshire Bank after which he joined the board of RBS in 1998. He was knighted for his services to banking in 2004 and Sir Fred has been chairman of the Prince's Trust charity for a number of years. The chief executive agreed to waive a pay-off, which includes the right to a year's salary - £1.29m in 2007. Including his £2.86m bonus, he was paid a total of £4.2m that year. But it has now emerged that the 50-year-old is already drawing payments from a pension pot worth £16m. Bookmark with: 0 metrowebukmetro The FSA will look into the collapse of RBS again following revelations about Sir Fred Goodwin (PA) metrowebukmetro The FSA will look into the collapse of RBS again following revelations about Sir Fred Goodwin (PA) Sir Fred Goodwin super-injunction broken in House of Lords

Question: What nickname was given to former bank chief Sir Fred Godwin?
Answer: FRED THE SHRED